IPO: Impact on Executive Wealth and Liquidity

A fast-growing medical device company expects to file for an initial public offering (IPO) next year. The company has offered incentive stock options (ISOs) to their executives and these execs now have the opportunity to exercise early, if they choose to. After the IPO, executives will be forbidden to sell during the 180-day lockup period and there will be limits detailing how much company stock an executive can sell all at once. The executives realize that these economic and tax decisions are more complex than those they have had to make in the past.

Participant Issues: Using Stock Options to Meet College Costs

Justin, a mid-level operations executive, pops into Carol’s office one day. Justin is seeking advice from the company’s long-time stock plan administrator about tapping funds for his son’s college tuition next fall. While Justin has several options for meeting college costs for his son, Aaron, he’s trying to understand the net after-tax proceeds if he used options to fund tuition costs.

How Post-Vesting Periods Play Havoc with Unplanned Retirement

After recently being acquired by an out-of-state company, all headquarters personnel are at risk of being let go. At age 60, Eileen faces unplanned retirement along with many of her colleagues at the high tech company where she works. Perhaps you recognize high-potential employees who fit Eileen’s description.